Hey all,
Well, my turn signal mystery was finally solved to the tune of $232(!!!!).  I
took the '78 bus to a local mechanic who is a friend of my dad's because we had
no idea what was causing the turn signal/hazard flasher weirdness.  The mechanic
today told me that the turn signal switch had a short in it and that when it was
turned to the right position, it blew everything out.

Here's the breakdown:
1 hazard flasher/turn signal relay -- $12.98
1 turn signal switch -- $78.95
1 hazard flasher switch -- $39.95
1 Box fuses -- $1.95
Labor -- $80.00

He said that if he had bought the turn signal switch from the local VW dealer,
it would have been $130 or so.  Ouch!  Well at least the problem is solved.

Thanks to everyone who helped me out with this problem, including Joel and Bob.

Take it easy everybody,
Sean